Originally Posted by robelz
Only one and a half years later Najad is insolvent again...
Pleasure boat manufacturer Nord West & Najad in Henan, Orust have filed for bankruptcy. The company is one of Scandinavia's largest boat builders. It is unclear what bankruptcy means for business.
According to the company website it launched a new boat model in Gothenburg boat show a few weeks ago.
The company was formed when the boat manufacturer North West bought, in October 2012, Najad that bankrupted in 2011.
Najad had built boats in Henan on Orust in 40 years when the bankruptcy happened in 2011.
Nord West & Najad has over 140 employees and a turnover of over 300 million euros.
"The last three years, 60-70 percent of all jobs in the marine industry have disappeared. During this difficult time, the North West is not terminated any employees, but now they have therefore filed a bankruptcy petition," said GS unions negotiator, Kenneth Edvardsson to GP.
According to SAVE, the company's sales plummeted after the New Year. His assessment is that the business needs to bring in some new owners, who can finance it.
"The activity will be kept running barely so much you can ask for in this situation," said bankruptcy trustee Frederick Tengström, who took over responsibility for North West & Najad.
Mats Eriksson, CEO of Sweboat, boating Federation, is very surprised to Nord West & Najad gone bankrupt.
"First, we feel that it is a well-managed company, and also feels like the industry is at the end of the austerity program lasting five years., We are starting to see optimism," says Eriksson said.
He emphasizes, however, that the boat manufacturing requires that you have plenty of capital.
I would say that it was predictable. The only way a smaller company like Nord West could have success with Najad was downsizing the company to market demand and then try to grow again. They have maintained all Najad employees (and I don't believe it was for their choice, but because they had too) on a company that has producing only a fraction that was producing some years ago. The results were as I said predictable.
Maybe the bankruptcy is a maneuver needed to re-scale the company and fire employees without having to pay impossible compensations.
Some hints on that new point to that. Anyway I wish them good look, a company that produced so many years boats with such an impeccable quality deserve to survive.